Q2 Earnings Report: GlaxoSmithKline, Eli Lilly and Bristol Myers Squibb

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Q2 Earnings Report: GlaxoSmithKline, Eli Lilly and Bristol Myers Squibb

Three of the largest pharmaceutical companies have reported their earnings for the second quarter of 2012; GlaxoSmithKline plc (NYSE:GSK), Eli Lilly & Co. (NYSE:LLY), and Bristol Myers Squibb Co. (NYSE:BMY).

GlaxoSmithKline plc (NYSE:GSK) reported an EPS of 40 cents for the quarter ending on June 30th, while diluted per share earnings were 39.7 cents, which misses the analysts’ estimates. For the same quarter of 2011, GSK earnings per share were 25 cents . The total operating profit was $2.74 billion. The profits before taxation were 2.45 billion, while after tax cuts it came to $2.08 billion. The total sales for this quarter was $10.21 billion, the total turnover for the year ago quarter was $11 billion. The analysts estimated sales of $10.47 billion which would have been a 5% dip from the year ago quarter.

CEO of GSK, Andrew Witty said in a statement; “It’s a question of timing – two or three quarters, if you will, being muted by the macro-economic effect of pricing in Europe.”

GSK has previously missed predicted sales in the first quarter of 2012, and the last quarter of 2011.UK’s biggest drug company just finalized the acquisition of Human Genome, sales are expected to rise in the next year.

Eli Lilly & Co. (NYSE:LLY) reported second quarter earnings with an EPS of 83 cent per share, while analysts at Thomson Reuters forecast was 77 cents per share . LLY grossed 92 cents EPS in the last quarter of 2012, while the profits per share was 118 cents in the year ago quarter. The net profit for these three months equaled to $923.6 million, while it amounted to $1.2 billion in the corresponding quarter of 2011. The total revenue fell to $5.6 billion, which is a 10 percent decline from the year ago revenue of $6.25 billion, the analysts estimated sales to equal $5.59 billion.

Just like Novartis, Eli Lilly has also suffered from patent expirations. The drug company has lost the patent for Zyprexa. On the other hand, Cymbalta depression treatment has boosted sales in this quarter. The earnings outlook of Eli Lilly is, so far, the best among US based pharmaceutical companies.

Bristol-Myers Squibb Co. (NYSE:BMY) second quarter profits fell to $645 million or 38 cents per share from $902 million, or 52 cents per share in the corresponding quarter of 2011. The analysts predicted that the company would report EPS of 48 cents. The total revenue in this quarter declined to $4.44 billion from $5.43 billion in the same quarter of last year. The total sales in this quarter parallel the analysts’ estimates of $4.45 billion.

The decline in revenues can be attributed to the rising competition for Bristol-Myers’s showcase drug, Plavix, taken for heart attacks and strokes. The sale of this particular drug has fallen 60 percent in this quarter. Revenue from other drugs like Avapro and Avalide also declined. According to the company’s estimates, the expected earnings for the year of 2012 are 178-188 cents per share.



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